Short Term Technical Analysis for Majors (08:00 GMT)
Driven by the news, the single currency broke out of short-term range, when gains accelerated, to clear key short-term barrier at 06/07 Aug double top at 1.2440. Positive sentiment that came in play on increased risk appetite, keeps the upside in focus in the near-term, as gains approached initial target at 1.2500. Consolidative action on overbought hourlies is under way, with possible deeper reversal to be ideally contained at/above 1.2415/00 zone, where Fib 38.2% and 55 day EMA, along with psychological 1.2400 level, offer good support.
Res: 1.2477, 1.2486, 1.2500, 1.2520
Sup: 1.2440, 1.2415, 1.2400, 1.2380
The pair consolidates its yesterday’s gains that broke above two-month range top and cracked our initial target at 1.5800. Shallow reversal on overbought hourly conditions has so far been contained by strong support of 20 day EMA and previous range ceiling at 1.5775, keeping the upside in focus, however, hourly indicators still pointing lower and extended conditions on 4h chart, do not rule out further corrective action. Another good support at 1.5750/40 zone, where Fib 38.2% and 50%, along with previous top and 55 day EMA, is seen as ideal reversal point in case of stronger dips. Only loss of 1.5700/1.5680, higher platform / trendline support, will sideline bulls. On the upside, lift above 1.5800 to open 1.5847, 22 May high, ahead of psychological 1.5900 barrier.
Res: 1.5803, 1.5847, 1.5900, 1.5905
Sup: 1.5765, 1.5753, 1.5743, 1.5722
Remains in near-term corrective mode off 79.65, 20 Aug fresh high, where daily Ichimoku cloud capped the upside action. Temporary footstep was found at 79.15, marked as ideal reversal point, along with 79.00/78.90 zone, Fib 38.2% / 50% of 78.15/79.65 and 55 day EMA. However, still negative structure on hourly and indicators pointing lower on 4h chart, keep the downside vulnerable. From the other side, clear break above 79.65 is seen as a trigger for test of 80.00.
Res: 79.52, 79.65, 79.94, 80.09
Sup: 79.15, 79.08, 79.00, 78.90
The negative sentiment keeps to drive the pair lower, as loss of initial 0.9700 platform, accelerated losses through key short-term support and double bottom at 0.9655, approaching psychological 0.9600 level. Brief consolidation off 0.9617, yesterday’s low, has not shown much of recovery, as negative short-term studies keep the downside in focus, with some delay in stronger slide, to be seen on oversold short-term conditions. Clear break below 0.9600, to expose 0.9650 zone, 90 day SMA / daily Ichimoku cloud base, ahead of psychological 0.9500 level. On the upside, regain of minimum 0.9700/20, is required to ease bear pressure, while 0.9800 zone caps for now.
Res: 0.9655, 0.9700, 0.9720, 0.9747
Sup: 0.9617, 0.9600, 0.9550, 0.9500